Big Lots, the discount chain that sought bankruptcy protection in September, has finalized an agreement that will maintain the operations of numerous stores and distribution centers.
The acquisition will involve the sale of Big Lots to Gordon Brothers Retail Partners, a company specializing in assisting distressed businesses. Subsequently, Gordon Brothers will oversee the transition of Big Lots’ stores, distribution centers, and assets to other retail entities.
Variety Wholesalers Inc., a firm with over 400 discount stores across the Southeast and Mid-Atlantic areas, is set to purchase and operate approximately 200 to 400 Big Lots stores under the Big Lots brand. Additionally, Variety Wholesalers will acquire up to two distribution centers as part of the transaction.
“This sale agreement and transfer present the strongest opportunity to preserve jobs, maximize value for the estate and ensure continuity of the Big Lots brand,” Big Lots President and CEO Bruce Thorn said in a statement. “We are grateful to our associates nationwide for their grit and resilience throughout this process.”
Columbus, Ohio-based Big Lots sells furniture, home decor and other items. When it filed for bankruptcy in September, it said inflation and high interest rates caused consumers to pull back on their purchases of home and seasonal products, two categories the chain depends on for a significant part of its revenue.
At the time, Big Lots planned to sell its assets and ongoing business operations to private equity firm Nexus Capital Management.
But on Dec. 20, Big Lots said the deal with Nexus didn’t materialize. It then partnered with Gordon Brothers to conduct going-out-of-business sales at its 869 U.S. locations.
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